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Mar 31
Reynolds Q1 2025 Earnings Report
Reported financial results for the first quarter ended March 31, 2025
Key Takeaways
Reynolds Consumer Products reported a decrease in net revenues and net income for the first quarter of 2025 compared to the prior year, primarily driven by lower retail volume and increased costs. Adjusted Net Income and Adjusted EPS remained unchanged, while Adjusted EBITDA decreased. The company successfully refinanced its term loan facility, extending its maturity.
Net Revenues decreased by $15 million to $818 million compared to Q1 2024.
Net Income decreased by $18 million to $31 million compared to Q1 2024, primarily due to refinancing and CEO transition costs.
Adjusted EBITDA decreased by $5 million to $117 million, reflecting lower volume and higher operational costs.
The company completed the refinancing of its term loan facility, enhancing financial flexibility.
Reynolds
Reynolds
Reynolds Revenue by Segment
Revenue by Segment
Reynolds Cooking & Baking Revenue
CapyFin.comHefty Waste & Storage Revenue
CapyFin.comHefty Tableware Revenue
CapyFin.comPresto Products Revenue
CapyFin.comUnallocated Revenue
CapyFin.com Forward Guidance
The company expects 2025 Net Revenues to be down low single digits compared to 2024 and forecasts Adjusted EBITDA between $650 million and $670 million and Adjusted EPS between $1.54 and $1.61 for the full year. For the second quarter of 2025, Net Revenues are expected to be down 2% to 5% versus the second quarter of 2024, with Adjusted EBITDA expected to be between $155 million and $165 million and Adjusted EPS between $0.35 and $0.39.
Positive Outlook
- Targeted investment and programs to drive future growth and margin expansion.
- Expected positive pricing of two to four points for the year.
- Retail volume expected to be at or above category performance.
- Refinancing of term loan facility extends maturity to 2032.
- Upsizing of undrawn revolving credit facility to $700 million strengthens liquidity.
Challenges Ahead
- Expects 2025 Net Revenues to be down low single digits.
- More pressure expected on Company categories, previously estimated to be down 2% for the year.
- Expected additional cost increases resulting from tariffs.
- CEO transition costs and strategic investment costs will impact Net Income.
- Second quarter 2025 Net Revenues expected to be down 2% to 5%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income